Goldman Sachs
GS
$1004.42
+0.19%
Goldman Sachs is a storied financial institution, founded in 1869 and best known for its role as a leading global investment bank, with a sprawling reach across global financial centers and a dominant position in M&A advisory for over two decades. The firm has strategically expanded into more stable fee-based businesses like asset and wealth management, which now comprise roughly 30% of post-provision revenue, while maintaining its strength in global markets and investment banking. Currently, the investor narrative centers on the firm's ability to sustain robust revenue growth amid volatile markets, with recent quarterly results showing a 22.9% YoY revenue surge, driven by strong performance in Global Markets and Investment Management, though concerns about capital-intensive balance sheet activities and the impact of geopolitical tensions on trading revenues persist.…
GS
Goldman Sachs
$1004.42
Related headlines
Investment Opinion: Should I buy GS Today?
We rate Goldman Sachs as a Buy, given its strong growth trajectory and attractive valuation. The consensus rating is 'hold' with an average target of $1,141.65, but we see upside from the PEG ratio of 0.65 and forward PE of 14.0x, which are below historical norms.
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GS 12-Month Price Forecast
The AI assessment is bullish, driven by strong revenue growth and attractive valuation metrics. However, confidence is medium due to market volatility and high leverage. The stance would be upgraded if revenue growth accelerates above 25% or if the stock pulls back to below $900, while a downgrade would occur if trading revenues decline or if the PE ratio exceeds 20x.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Goldman Sachs's 12-month outlook, with a consensus price target around $1141.65 and implied upside of +13.7% versus the current price.
Average Target
$1141.65
0 analysts
Implied Upside
+13.7%
vs. current price
Analyst Count
—
covering this stock
Price Range
$730 - $1325
Analyst target range
The wide range between the low and high targets ($730 to $1,325) highlights the divergent views on Goldman's future performance. The high target likely assumes continued strength in trading and investment banking, along with successful expansion in asset management, while the low target may price in potential market downturns or regulatory headwinds. Recent ratings from major firms have been mixed, with JP Morgan and UBS maintaining neutral stances, while Barclays and Wells Fargo remain overweight. This mixed sentiment suggests analysts are cautious but see potential upside, making the stock a 'hold' with a positive tilt.
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Bulls vs Bears: GS Investment Factors
Goldman Sachs presents a compelling bull case with strong revenue growth, improving profitability, and an attractive PEG ratio. However, the bear case highlights high leverage, negative free cash flow, and sensitivity to market volatility. Currently, the bull case has stronger evidence given the robust Q2 performance and undervaluation metrics, but the key tension is whether the firm can sustain this growth amid geopolitical and market risks. The most critical factor is the trajectory of Global Markets revenues, which if they falter, could quickly erode the investment thesis.
Bullish
- Strong Revenue Growth: Q2 2026 revenue surged 22.9% YoY to $38.4 billion, driven by Global Markets ($20.6B) and Investment Management ($9.2B). This acceleration from Q1's $17.2B shows robust momentum across key segments.
- Undervalued on PEG Ratio: With a PEG ratio of 0.65, the stock trades below its growth rate, suggesting undervaluation. The forward PE of 14.0x implies expected earnings growth of ~17%, aligning with recent EPS expansion.
- Strong Profitability Improvement: Net income jumped to $6.6B in Q2 2026 from $3.7B a year ago, with EPS rising to $21.27 from $11.07. Operating margin improved to 30.0% from 15.9%, reflecting operational leverage.
- Analyst Target Upside: The average analyst target of $1,141.65 implies ~10.4% upside from the current price of $1,033.99. The high target of $1,325 suggests potential 28% upside if bullish scenarios materialize.
Bearish
- High Debt-to-Equity Ratio: Debt-to-equity stands at 4.88x, reflecting the capital-intensive nature of investment banking. This leverage amplifies risk during market downturns, as seen in the 2020 COVID crash.
- Negative Free Cash Flow: TTM free cash flow is -$41.9 billion, indicating heavy capital deployment in trading assets and lending. This could constrain dividend growth or require external financing if markets tighten.
- Geopolitical and Market Sensitivity: Beta of 1.29 indicates higher volatility than the market. Recent news highlights geopolitical tensions causing market sell-offs, which could hit trading revenues and investment banking activity.
- Mixed Analyst Sentiment: Consensus rating is 'hold' with a mean score of 2.6. Major firms like JP Morgan and UBS maintain neutral stances, reflecting uncertainty about sustained growth in a volatile environment.
GS Technical Analysis
Goldman Sachs is in a sustained uptrend, with the stock price up 37.6% over the past year, significantly outperforming the S&P 500's 18.6% gain. The current price of $1,033.99 sits at approximately 89.6% of its 52-week range (between $721.16 and $1,153.99), indicating the stock is trading near its highs, reflecting strong momentum but also potential overextension. The 6-month price change of 20.3% further confirms the bullish trend, though the stock has pulled back from its July peak of $1,152.07, suggesting some consolidation.
Beta
1.29
1.29x market volatility
Max Drawdown
-19.8%
Largest decline past year
52-Week Range
$722-$1154
Price range past year
Annual Return
+37.4%
Cumulative gain past year
| Period | GS Return | S&P 500 |
|---|---|---|
| 1m | -2.2% | +1.0% |
| 3m | -8.1% | +1.1% |
| 6m | +22.3% | +13.8% |
| 1y | +37.4% | +19.5% |
| ytd | +9.9% | +12.2% |
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GS Fundamental Analysis
Goldman Sachs reported Q2 2026 revenue of $38.4 billion, a 22.9% increase YoY, driven by strong performance in Global Markets ($20.6 billion) and Investment Management ($9.2 billion). This marks a significant acceleration from the prior quarter's revenue of $17.2 billion, indicating robust growth momentum. The company's net income for Q2 was $6.6 billion, with EPS of $21.27, up substantially from $11.07 in Q2 2025, reflecting improved profitability. Revenue growth has been consistently strong, with Q1 2026 revenue of $17.2 billion and Q4 2025 revenue of $30.1 billion, showing a clear upward trajectory.
Quarterly Revenue
$38.4B
2026-06
Revenue YoY Growth
+22.9%
YoY Comparison
Gross Margin
52.7%
Latest Quarter
Free Cash Flow
$-41.9B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is GS Overvalued?
Given Goldman Sachs' positive net income, the PE ratio is the primary valuation metric. The trailing PE is 16.9x, while the forward PE is 14.0x, indicating the market expects earnings growth. The gap between trailing and forward PE suggests an anticipated 17% earnings increase, which aligns with the company's recent strong performance. The PEG ratio of 0.65 implies the stock is undervalued relative to its growth rate, making it an attractive value proposition.
PE
16.9x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 6x~26x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
30.0x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks are significant due to Goldman's high debt-to-equity ratio of 4.88x, which amplifies losses during market downturns. The negative free cash flow of -$41.9 billion TTM indicates heavy capital deployment, potentially straining liquidity if funding markets tighten. Revenue concentration in trading and investment banking (over 70% of revenue) makes earnings volatile, as seen in Q3 2024 when EPS dropped to $8.52 amid market stress.
